186. Deputy Ann Graves asked the Tánaiste and Minister for Finance whether he agrees that the introduction of a tax stamp system for vaping products could assist in the enforcement of the e-liquid products tax and in tackling the illicit vape market; and if he will make a statement on the matter. [52765/26]

Simon Harris, Tánaiste and Minister for Finance: Ireland currently operates a tax stamp system in accordance with section 73 of the Finance Act 2005, as amended, in respect of two specified tobacco products: cigarettes and roll-your-own tobacco. The taxation of tobacco products generally (including cigarettes and roll-your-own) is harmonised across the EU, which makes the products subject to the strict EU-wide control and movement regime. The Excise Movement and Control System (EMCS) is an EU-wide system, administered by national tax authorities, under which the movement of excisable products is tightly controlled through authorised tax warehouses with duty suspension arrangements. Excise liability arises when such products are released for consumption. The operation of Ireland’s tax stamp for cigarettes and roll-your-own tobacco is closely linked to the operation of EMCS for these products.

At present, there is no EU-wide harmonised taxing regime for e-liquid products. Therefore, many Member States, including Ireland, have introduced their own national excise on these products for health policy reasons. As a non-harmonised national excise, Ireland’s operation of E-Liquid Products Tax (EPT) has to be compatible with EU Single Market rules. Consequently, e-liquid products entering the State from other EU Member States or from Northern Ireland cannot be subject to the type of cross-border movement controls that are integral to the regime for the existing EU-harmonised excises, such as tobacco tax.

During the design of EPT, consideration was given by my Department and by Revenue to the appropriate charging point for the tax. Approaches to other Irish excises and similar taxes in other jurisdictions were considered. It was concluded that charging EPT at the point of first supply in the State is the most appropriate approach.

An alternative model of a ‘released for consumption’ approach to charging EPT would require the development and operation of a complex national (non-EMCS) system of tax warehousing and control. Such a system could only have very limited effectiveness in a non-harmonised regime – given that the system could only operate on a national basis and without recourse to cross-border controls – and the cost of setting up and operating such a system could not be justified given such limitations on its potential effectiveness. In these circumstances, the introduction of a tax stamp would not be a useful tool in securing the collection of EPT.

The Deputy will be aware that in July 2025, the EU Commission published its proposed recast of the Tobacco Taxation Directive. Among other changes, the proposal involves introducing harmonised taxation of e-liquid products across the EU and bringing these products within the scope of EMCS, which will ensure the movements of e-liquid products into and within the Union will be recorded and monitored. My Department, with support from Revenue, has been actively engaged in negotiations on these proposals at EU Council.

The Deputy has also referred to the illicit vape market. She may wish to note that, whereas  my Department and Revenue deal with taxation matters, Policy and legislation regarding e-liquid and e-cigarette products generally, including regulation of their content, and of their sale and promotion is dealt, with by my colleague the Minister for Health and her Department, and enforced principally through the network of Environmental Health Officers operating under the Health Service Executive.

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Dáil Éireann debate. Question 187 – Revenue Commissioners [52766/26]

187. Deputy Ann Graves asked the Tánaiste and Minister for Finance the number of Revenue staff assigned to compliance and enforcement activities relating to the e-liquid products tax as of 30 June 2026; the number that was assigned to such activities upon commencement of the tax on 1 November 2025; and if he will make a statement on the matter. [52766/26]

188. Deputy Ann Graves asked the Tánaiste and Minister for Finance the measures currently being undertaken by the Revenue Commissioners to identify and tackle non-compliant operators selling vaping products, including non-traditional retail outlets, such as phone shops, whose primary activity is not the sale of vaping products; and if he will make a statement on the matter. [52767/26]

189. Deputy Ann Graves asked the Tánaiste and Minister for Finance whether he accepts that non-compliance with the e-liquid products tax by some retailers places compliant businesses at a competitive disadvantage; the assessment that has been made of this issue; and if he will make a statement on the matter. [52768/26]

Simon Harris, Tánaiste and Minister for Finance: I propose to take Questions Nos. 187 to 189, inclusive, together.

The E-Liquid Products Tax (EPT) was legislated for in Finance Act 2024 and came into effect on 1 November 2025. The tax is chargeable at the point where an e-liquid product is first supplied in the State, and it applies at the rate of €500 per litre. This ‘first supply model’ supports effective administration of the tax, as it places the tax charge at an early point in the supply chain, where there is typically a smaller number of operators. Any supplier who makes a first supply of e-liquid products in the State is required by the legislation to register with Revenue for EPT in advance of making such a first supply. Generally, it is importers and manufacturers of e-liquid products for sale who are liable to account for and pay the tax. Some retailers may also be importers or wholesale suppliers. However, the majority of those required to register, file, and pay the tax, are manufacturers and importers, rather than retailers.

I am advised by Revenue that, in designing EPT, a number of key administrative issues were considered including clear identification of what is to be taxed, the basis of assessment, the point of taxation and the liable person. Central to these considerations was ensuring that the tax was designed to encourage voluntary compliance by minimising the administrative burden on compliant taxpayers while enabling Revenue to identify and address non-compliance.

EPT is collected on a self-assessment basis and provisional yield since its introduction on 1 November 2025 is over €22 million.  The full range of compliance interventions and enforcement provisions that are normal for self-assessed taxes also apply to EPT. Revenue selects cases for compliance intervention based on risk and uses a range of risk identification, assessment and evaluation processes allowing them to focus resources where they have greatest impact and to minimise the burden on compliant taxpayers. EPT compliance may be examined as part of cross-tax head checks. Revenue fully utilises a comprehensive legislative framework that has been enacted by the Oireachtas to support its work against those who do not comply with their tax obligations, including for EPT.

Revenue is a fully integrated tax and customs administration, with approximately 2,000 of its staff engaged in a range of activities focused on targeting and confronting non-compliance across all taxes and duties. It is not possible to disaggregate staffing resources deployed exclusively to EPT compliance. For effective operational management, Revenue allocates resources to different aspects of enforcement and compliance work, and these resources are adjusted and realigned in response to changes in the level of risk in different sectors.

Revenue welcomes and acts on intelligence received from businesses or from members of the public regarding actual or suspected non-compliance activity regarding any duties or taxes, including EPT. Details about suspected tax non-compliance can be provided in confidence to Revenue by phone to 1800 295 295. Alternatively, information can also be provided in confidence via the Revenue website or alternatively can be submitted directly to any Revenue office in writing.

The Deputy has referred to the illicit vape market. She may wish to note that, whereas my Department and Revenue deal with taxation matters, policy and legislation regarding e-liquid and e-cigarette products generally, including regulation of their content, and of their sale and promotion is dealt with by my colleague the Minister for Health and her Department, and enforced principally through the network of Environmental Health Officers operating under the Health Service Executive (HSE).  This includes the new licensing regime for retailers of tobacco products and/or nicotine inhaling products such as vapes which came into effect on 2 February 2026 under the Public Health (Tobacco Products and Nicotine Inhaling Products) Act 2023.  This new licensing regime is administered by the National Environmental Health Service of the HSE.